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Unifi records loss in 2011 December quarter
Unifi reported a net loss for the December 2011 quarter of $7.6m compared to net income of $5.4m for the same quarter a year ago, according to its preliminary operating results.
This is despite the company seeing net sales in this period increase by 3% ($5m) to $167m, compared to the same quarter 12 months previously.
The company, a producer and processor of multi-filament polyester and nylon textured yarns, added that the higher sales prices affected results, while raw material inflation offset unit volume softness caused by inventory destocking across the apparel supply chain.
Bill Jasper, chairman and CEO of Unifi, said: "While I am disappointed we are reporting our first quarterly loss in over two years, I am pleased with our ability to generate cash despite historically high raw material prices and weak demand.
"Although we believe there is still some excess inventory within the supply chain, we expect the effects of the destocking to be significantly less in the company's third fiscal quarter and are encouraged by the volume improvements we have seen since returning from our holiday shutdown period.”
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) were $7.3m for the December 2011 quarter and $15.5m for the first half of fiscal 2012, compared to $15.7m and $34.1m for the respective periods of fiscal 2011.
